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Meaning of the economy and 3 information about its importance 2020

The concept of economy

The term economy originates from the Greek term Oiconomia. Refers to the cleaning service; It is worth noting that all definitions of economics indicate that it is this science that strives to reveal the nature and nature of the wealth available for peoples and nations to achieve their production and then use it according to Adam Smith; Consequently, we can define economics more broadly as the science that deals with the activities and processes related to the exploitation of the scarce resources available in a society in order to create valuable products; And distribute it among the members of society as provided by Lionel Robins, and Alfred Marshall defined a definition of economics as the study of humanity in the ordinary works of life.

Meaning of the economy and 3 information about its importance 2020
Meaning of the economy and 3 information about its importance 2020

The concept of the economy refers to the optimal use of all the limited resources that a society possesses through a set of activities and operations based on the main factors of the economy, namely:
Land, work, capital and company; Where we can describe the activity as economic if the aforementioned elements are available together.
The economy can also be defined as that science that deals with studying how individuals exploit the resources available to them or making a decision that benefits them by using products or services that benefit them; It should be noted that the concept of economy is not limited to wealth, finance, recession, and banking, but also expands to include much broader ranges.

Types of economy

The economy is generally divided into two main parts; Are:
  • Macroeconomics: Macroeconomics examines the general framework of the economy. Among the most important things it addresses are GDP, inflation and others. Macroeconomics, by its nature, analyzes how all the markets that come with great phenomena are known as aggregate variables.
It can be said that macroeconomics is one of the branches of the economy that deals with the study of the economy that a country performs in a specific period of time to choose the optimal alternative from a set of good, better and better options, and works to preserve a specific lifestyle for society and achieve prosperity in its economic and social aspects.
  • Microeconomics: This section highlights the study of consumer behaviour and individual companies; As it depends in the analysis of this on the theory of consumer demand; The theory of production as well, since it has to do with the study of the nature of competition in the market and the extent of economic prosperity achieved by the economy for individuals, and among the topics that also interest it: minimum wages, price support, taxes, the monopoly in individual markets and others, it should be borne in mind that microeconomics plays an effective role in the analysis of the ideas presented and, therefore, in trade decision-making and the formulation of public policies.
Meaning of the economy and 3 information about its importance 2020

Meaning of the economy and 3 information about its importance 2020

The importance of the economy.

  1. The importance lies in the economy with its positive impact on society. How is it possible to see the problems of inflation and massive unemployment in society as rampant and destructive for it; The economy may avoid these problems by enacting ideal economic policies, such as unemployment reduction policies. And policies to reduce inflation, and in your search, you can achieve a significant recovery in economic well-being.
  2. Examples of the above What happened in 1930 in Europe? As mass unemployment led to widespread political instability across Europe, this also contributed to the emergence of extremist political parties outside of this; Consequently, John Maynard Keynes developed his general theory of employment, income, and money. When he emphasized that the classical economy overshadows its approach to dealing with the problem, The country needs an expansive fiscal policy to advance in solving the problems it faces.
  3. The economy plays an effective role in avoiding some of the problems that free markets can bring to societies; This is done by proposing policies that eliminate all the problems that contribute to market failure. One of the most important policies is the subsidization of public services and the imposition of negative external taxes, which helps the government to study the economic situation of society, whether for better or for worse. This allows you to target the intervention and have an impact as the products are delivered to the market.
اسمى مؤمن خالد من مصر عمرى 18 عام اهوى التدوين وكتابة المقالات أدرس سيو و سوشيال ميديا ماركتنج وتسويق الكترونى بشكل عام وحاصل على شهاده معتمده من جوجل فى التسويق الإلكترونى وأتطلع للمزيد


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  1. لآ بس حلوة المقالة بتاعتي دي
    أنا كنت كاتبها بضمير


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